In the long run, the effect of a reduction in the money supply is to
A) decrease both the price level and real Gross Domestic Product (GDP).
B) decrease real Gross Domestic Product (GDP) only.
C) decrease the price level and increase real Gross Domestic Product (GDP).
D) decrease the price level only.
D
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Social Security is a pure transfer program because
A) it transfers funds from current workers to the poor. B) the government transfers funds from middle-income workers to welfare recipients. C) current payroll taxes are used to pay the eligible retirees. D) the government subsidizes the medical bill of the poor.
Assume that the U.S. labor force consists of 185 million workers and that 17.5 million are officially unemployed. Calculate the unemployment rate
a. 11.4 percent b. 10.0 percent c. 9.5 percent d. 7.5 percent e. 10.8 percent